Question

How does the Federal Reserve System reduce the length and severity of economic downturns?

A. By maintaining the proper flow of money

B. None of these options

C. By letting a very small amount of money flow through the economy
d

D. By letting an excess amount of money flow through the economy

Answer 1

y by increasing spending,

Step-by-step explanation:

Answer 2

I hope this helps

Step-by-step explanation:

To help accomplish this during recessions, the Fed employs various monetary policy tools in order to suppress unemployment rates and re-inflate prices. These tools include open market asset purchases, reserve regulation, discount lending, and forward guidance to manage market expectations.